French government in row over growth forecast

Published: 19 Feb 2013 10:01 GMT+01:00

The French government became involved in an embarrassing internal row on Tuesday after the Finance Ministry was forced to deny an earlier statement Foreign Minister that they will reduce its forecast for growth of the economy this year from 0.8 percent.

When asked by a journalist on RTL radio if the figure would be 0.2-0.3 percent, Fabius replied that "it's around this figure", having previously recalled that the forecast had first been 1.2 percent, and then 0.8 percent.

Fabius did not specify whether he meant that the previous forecast of 0.8-percent growth would be cut to 0.2-0.3 percent, or by 0.2-0.3 percentage points which would put the new forecast at 0.5-0.6 percent.

He said: "There was a growth forecast which was to begin with 1.2 percent. Then it was revised to 0.8 percent and now, as across Europe, things don't seem to be going at all well. We will be obliged to revise downwards.

He said: "This must be done in the next few days."

Fabius's comments caught the government's Finance Ministry in Bercy off guard and statements denying the forecasts were to be revise were quickly dispatched.

"As the Finance MinisterPierreMoscovici, has repeated several times,thegrowth forecast for2013 in Franceis not yet set becausethere is a procedureto complywithEuropean partners," read a statement released from Bercy.

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